Banks prepare for battle with Fed over G-Sib rules

Proposals would kill client clearing business, FCMs claim – but postponement is a chance to fight back

Eleven words, slipped into a seemingly innocuous Federal Reserve request for comment, caused a scramble among the eight largest US banks this summer, when it was discovered the wording could result in an extra $10 billion in capital requirements and threaten the viability of the client clearing business.

“It was put out in a strange and unusual way: we were like, ‘what is this?’ And then we said to ourselves, ‘oh s***, this is probably going to have a pretty big impact’,” says a regulatory

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